World Bank approach to fund Indian Railways

The World Bank has been approached to explore the possibility of setting up of a Railway Infrastructure Development Fund, Railway Minister Suresh Prabhu said on Wednesday.

"The World Bank has taken up a detailed scoping and options study for creating such a fund," he said in Lok Sabha during Question Hour.

The Minister said the government has permitted 100% Foreign Direct Investment in rail sectors like construction, operation and maintenance of the suburban corridor projects, high-speed train projects, dedicated freight lines, rolling stock including train sets and locomotives or coach manufacturing and maintenance facilities.

Prabhu said railway electrification, signalling systems, freight terminals, passenger terminals, infrastructure in industrial park pertaining to railway lines and mass rapid transport system are other areas where 100% FDI were permitted.